Menicon Company (7780) Q4 2025 earnings summary

Executive summary

• Net sales rose 4.6% year-over-year to JPY 121.5 bn, driven by strong 1-DAY/daily disposable lens sales in Japan and Europe, and price revisions.

• Operating profit increased 12.3% to JPY 10.1 bn, with profit attributable to owners up 23.8% to JPY 5.6 bn.

• Strategic investments included new production lines and plant expansions in Malaysia and Singapore to meet rising demand.

• Growth in Vision Care offset stagnation in Ortho-K-related sales in China and a slight decline in Healthcare and Life Care.

• The company exited unprofitable segments in the food and animal symbiosis businesses.

Financial highlights

• Gross profit rose 6.7% to JPY 65.1 bn; gross margin improved by 1.1 pts to 53.6%.

• EBITDA increased 9.5% to JPY 18.5 bn; EBITDA margin up 0.7 pts to 15.2%.

• SGA expenses grew 5.7% due to investments in new plants, personnel, and R&D.

• Extraordinary losses of JPY 1.9 bn were recorded, mainly from impairment losses and restructuring in China and Europe.

• Dividend per share increased to JPY 28, with a payout ratio of 37.8%.

Outlook and guidance

• FY2025/2026 net sales forecast at JPY 125.0 bn (+2.9%), with operating profit at JPY 10.2 bn (+1.5%).

• 1-DAY lens sales expected to grow 12.1% to JPY 34.7 bn, offsetting a 16% decline in Ortho-K-related sales.

• Profit growth anticipated from 2H FY2025 as new production capacity comes online and price revisions take effect.

• Targeting net sales over JPY 140 bn, operating margin 12%, and ROE 12% by FY2028.

• Focus remains on expanding daily disposable and orthokeratology lens sales, with new production capacity in Malaysia and Singapore.